Golden Telecom Inc., in the first initial public offering by a Russian company in nearly three years, raised $55.8 million from a group of U.S. and European institutional investors.

But the offering was less than a roaring success. Underwriters, led by Bear Stearns Cos.' Bear, Stearns & Co. unit and Deutsche Bank AG, cut the estimated price range for the 4.65 million shares to $12 from $16 on Wednesday. And after the issue was...